Under the futures and options (F&O) segment, twelve stocks were banned from trade on Tuesday, 15 October by the National Stock Exchange (NSE). The securities banned for the F&O trade are Chambal Fertilisers, Gujarat Narmada Valley Fertilizers and Chemicals, Granules India, Hindustan Copper, IDFC First Bank, Indian Energy Exchange Ltd, Manappuram Finance, National Aluminium Ltd, Punjab National Bank, RBL Bank, Steel Authority of India Ltd, and Tata Chemicals Ltd.

Derivative contracts of these stocks were banned as the open market interest for these securities has crossed 95% of the market-wide position limit (MWPL) set by the exchanges. The MWPL is the maximum number of contracts that can be opened at any particular time. 

Chambal Fertilisers, Gujarat Narmada Valley, and Granules India, were retained on the list from Monday as the open interest as a percentage of the MWPL of its F&O contracts stood at 97%, 95.6%, and 86.3%, respectively. Hindustan Copper derivative contracts’ open interest is 87.1% of its MWPL on 15 October, compared to 84.5% for IDFC First Bank and 87.2% for Manappuram Finance. 

Furthermore, the Steel Authority of India, Punjab National Bank, and RBL Bank were also retained on the list as their open interest is 86.6%, 89.8%, and 86.2%, respectively. 

The above securities were retained on the list from Monday, 14 October. Indian Energy Exchange Ltd, National Aluminium, and Tata Chemicals were added to the list on Tuesday as the open interest of their F&O contracts reached 108.2%, 103.6%, and 104.8%, respectively.

The ban will be lifted once the position falls below 80%. Traders will get penalised for buying or selling these securities. They will be available for trading in the cash market. 

The National Stock Exchange updates the list of securities on the F&O ban list daily. This list serves as a guide for traders and investors in the market. Traders who trade in indices do not encounter a situation of security ban.

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